House Republicans Vote to Remove Consumer Protections & Risk Another Financial Crisis

NOTE:  Minnesota CD3 Representative Erik Paulsen vote to enact this bill.


 

MESSAGE FROM THE DEMOCRATIC WHIP

This week, House Republicans passed the Wrong Choice Act, which would dismantle consumer protections and allow Wall Street to engage in the same kind of risky practices that led to the financial crisis in 2008. The bill would gut the Consumer Financial Protection Bureau, which has returned $12 billion to 29 million Americans who were wronged by financial institutions, as well as eliminate rules of the road to prevent another financial crisis and taxpayer bailouts.

Unfortunately, the Wrong Choice Act is another example of Republicans rolling back protections for workers, consumers, investors, teachers and students, public health, and others – instead of addressing the priorities of the American people. Republicans have had control of both chambers of Congress and the White House for nearly six months, and they have failed to deliver for the American people. Among other failures, they haven’t yet put forward a single jobs bill or an infrastructure bill; they haven’t proposed a budget or started the process to fund the government; and they haven’t introduced comprehensive tax reform.

In the Senate, FBI Director Comey testified before the Intelligence Committee yesterday, and he reiterated that Russia interfered in the election and that they will do it again if we do not get to the bottom of what happened. He was right – this isn’t a partisan issue. We must work together to protect the integrity of our democracy. That is why I continue to call for an independent, bipartisan commission to investigate Russia’s efforts to interfere in the 2016 election and ties between Russia and President Trump’s campaign.  The American people deserve a public investigation and the full truth, and Democrats will continue to urge Republicans to work with us to establish such a commission.

Sincerely yours,

How the Financial Choice Act Hurts Americans

NOTE:  Minnesota CD3 Representative Erik Paulsen voted to enact this bill June 8, 2017.

The following article by Aaron Klein was posted on the Fortune Magazine website June 7, 2017:

Shoppers peruse supermarket aisle. Photograph by Tim Boyle—Getty Images

Congress this week is considering the Choice Act, which would roll back regulations enacted after the 2007 financial crisis, particularly those designed by the Consumer Financial Protection Bureau (CFPB). Yet, the legislation goes even further and limits consumer access to information that could help them make better choices.

One of the hallmarks of conservative regulatory philosophy is that educated and empowered consumers are preferable to government bureaucrats, regulations, and prohibitions. Yet, the conservatives in the House of Representatives appears ready to pass the CHOICE Act this week and in the process legally prohibit publishing data the government collects on consumer complaints on financial services. This is a mistake and would cost consumers and businesses. It would also go against the universal values of fair markets and informed consumers. Continue reading “How the Financial Choice Act Hurts Americans”

Paulsen Vote Tracker H.R. 10 Financial Choice Act of 2017 #badvotes

Status:  Passed in the House of Representatives

SUMMARY:  Rolls back the Dodd-Frank regulatory protections that were implemented following the 2008 economic crash.  The bill weakens the Consumer Financial Protection Bureau (CFPB).  The CFPB would be restructured as an executive branch agency with a single director who could be removed at will by the President.  The bill would remove the CFPB’s authority to police abusive acts and practices, including removing oversight of payday loans and arbitration agreements.

The bill removes the authority that provides regulators with a process for winding down large financial institutions in distress.  It would eliminate the ability of regulators to designate large non-banking financial institutions as systematically important, a label that comes with heightened oversight. Continue reading “Paulsen Vote Tracker H.R. 10 Financial Choice Act of 2017 #badvotes”